The arabica coffee market sagged while cocoa futures firmed in dealings which were lightened by the Jewish holiday, which sidelined many players.
The softs complex took a break from the travails of Europe's debt crisis although players cautiously monitored outside markets
ICE March raw sugar contract shot up 1.70 cents, or 7 percent, to trade at 26 cents a lb at 12:59 p.m. EDT (1859 GMT). Its peak at 26.44 cents on Wednesday represented the biggest one-day jump for the second position sugar contract since July 1, 2008.
December white sugar futures on Liffe gained $30.90 to close at $674.70 a tonne.
The raws market has brisk speculative buying as investors take aim at the 50 percent retracement level in the key March contract around 27.20-27.30 cents. That is the mid-point for the move from 30 and down to 24 cents.
Consumer buying has picked up and fueled sugar's surge while a smaller Brazilian sugar crop meant supplies are tight.
"Sugar is getting a (huge) lift," said Country Hedging Inc senior analyst Sterling Smith. "The market has plenty of reasons to bounce."
"We have seen physical demand coming in from Africa and the Middle East," said Kona Haque, analyst with Macquarie Bank.
Supplies of raw sugar, until the next Brazilian harvest, are expected to be tight to underpin prices.
In its latest quarterly report on Thursday, merchant Sucden said the 2011/12 center-south Brazilian cane crop had been revised down to 490 million tonnes.
"Repeated cuts to the Brazilian crop will send the production of sugar and ethanol ... to their lowest level in the past four years," Sucden explained.
Some traders noted though an outlook for plentiful supplies of white sugar due to bumper European harvests and prospects for Indian exports.
"There seems to be a less optimistic view for prices in the near to medium term with Russia's fantastic beet crop being mentioned and seemingly good prospects from India and Thailand," said Thomas Kujawa of brokerage Sucden Financial.
India is heading for a sugar surplus in 2011/12 and the government should help producers by allowing 4 million tonnes of exports -- more than double this year's overseas sales, the head of a producers' body said.
COFFEE SLUMPS AND COCOA FIRM
Arabica coffee futures chopped in a narrow range, respecting strong support around $2.30 per lb, basis December, dealers said.
December arabica coffee futures on ICE slid 3.10 cents to trade at $2.304 per lb at 1:05 p.m. London's November robusta coffee rose $9 to finish at $1,994 per tonne.
The seasonal dry conditions in top grower Brazil's coffee belt have raised concerns within the industry. The region will need rain in early October to trigger flowering, and some are worried the rain will arrive too late.
"If it rains tomorrow, everyone's on the safe side but starting Oct. 1 and onwards, and if the drought continues, it gets to be critical," said Christian Wolthers, of green coffee importers Wolthers America in Florida.
The spot arabica contract has so far fallen about 12 percent this quarter, its weakest quarterly performance since the fourth quarter of 2008, Thomson Reuters data showed.
US cocoa futures reversed higher, turning up as the market continued to consolidate after falling to a one-year low last week.
Open interest in cocoa futures on ICE hit the highest since February 2008 on Sept. 28, ICE data showed on Thursday, as the market was on track to end the third quarter of 2011 with the biggest drop in three years.
Copyright Reuters, 2011